Final Thoughts
Final thoughts
Written by Brett Linton & Ethan Bernard
May 21, 2024
From integrated to EAF, from hot-dipped galv to cold-rolled sheet, to the reputable vacuum tank degasser, the steel industry definitely has its own jargon. And we know our readers know that lingo backwards and forwards. Rather than test you on it, we thought we’d do something different.
In this special “Two-sday” edition of our crossword feature, we’re looking at double-meanings of steel terms. You know, from another angle, not necessarily a right angle but hopefully a humorous one with a pun here and there. So, have a look at the clues below, and try to see how they relate to the world of steel.
Note: We are doing a steel-themed crossword every week leading up to our Steel 101 course on June 11-12 in Fort Wayne, Ind. The course includes a tour of SDI Butler, an EAF sheet mill. If you want to learn more about steelmaking or market fundamentals, this is the course for you.
Steel history
Did you know the month of May each year was dedicated to steel? Approved on Nov, 2, 1966, by a joint resolution, Congress established May as “Steelmark Month.” Also, on April 8, 1967, President Lyndon B. Johnson called upon all the people of the country to observe the month every year. How are you celebrating?
Crossword
Click here to attempt this week’s “Two-sday” crossword.
Stumped? Click here to see the answers.
Brett Linton
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Ethan Bernard
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Final thoughts
It’s been a slow start to the week as far as news goes, something you’d expect ahead of a shortened Independence Day week. That said, it’s not as if transactions have completely ground to a halt. (Prices continue to drift lower.) And while news might be slow, rumors of low-priced deals, price hikes, and trade cases seem to have filled that void.
Final thoughts
Domestic plate prices have been on a historic run since they began surging in January 2021. Tags reached an all-time high of $1,940 per short ton (st) in May 2022, though they have mostly trended lower over the past two years.
Final thoughts
It was great to have Gary Stein, CEO of Triple-S Steel, join SMU for a Community Chat earlier this week. (Btw, you can find a record of the webinar here.) We covered a lot of ground. From Andrew Carnegie and the Johnstown Flood to the current steel market and the state of domestic manufacturing broadly speaking. One thing that stuck with me was how unevenly construction spending appears to be on “green” initiatives and other key items funded by infrastructure spending, the Inflation Reduction Act, and the CHIPS Act.
Final thoughts
US sheet prices continue to fall, with SMU’s average hot-rolled (HR) coil price now at $670 per short ton (st). Prices for cold-rolled and coated products are now in the mid/high $900s/st. As I noted in my last Final thoughts, the consensus among our readers is that prices will bottom out in July. And that makes intuitive sense. Lead times in mid/late July should be stretching into the typically busier fall months. The question then is where prices bottom.
Final thoughts
Many of our contacts remain bearish about the very short-term direction of steel prices. But a consensus seems to be forming, according to our latest survey results, that a bottom will occur in July. Consensus is also that hot-rolled (HR) coil prices won't fall below $600 per short ton (st).